“1011 Crash” One-Year Anniversary: $19 Billion Liquidation Alarm Still Rings, Analysts Warn of Derivatives Leverage Risks

Deep Tide TechFlow reports, on October 10, according to CoinDesk, it has been one year since the "1011 Crash," which triggered approximately $19 billion in leveraged liquidations in the crypto market. Analysts warn that the structural risks underlying this flash crash still persist. In October 2025, Bitcoin experienced a sudden flash crash just days after reaching an all-time high of over $126,000, plummeting sharply from around $122,000 to $105,000 in a short period, leading to the mass liquidation of leveraged long positions. Risk Dimensions analyst Mark Connors pointed out that recent short-term price movements remain heavily driven by derivatives like perpetual contracts rather than on-chain data. The preference of exchanges for high-leverage products has also failed to eliminate the risk of flash crashes. Additionally, the traditional four-year halving cycle pattern has shifted, with macroeconomic and political forces playing increasingly critical roles. Hyperion Decimus co-founder Chris Sullivan advised traders to avoid excessive leverage and closely monitor open interest, funding rates, and market sentiment indicators. Long-term investors are recommended to withdraw assets from trading platforms and adopt self-custody solutions.